The FRS Select Aggressive Balanced Fund uses multiple institutional investment funds and mutual funds. The Fund’s asset allocation is periodically updated by Financial Engines, a federally registered investment advisor and fiduciary to the FRS. The fees for the Fund will vary over time depending upon the fees of each underlying investment Fund and the allocation to each Fund. The table below includes detailed information on the operations of the FRS Select Aggressive Balanced Fund. Please see each investment Fund’s Detailed Fund Operations document for information on the specific Fund including their portfolio management.
 
Asset Class and Objective Balanced Blend of institutional funds and mutual funds
Product Benchmark Aggressive Balanced Fund Index; weighted blend of underlying funds’ benchmarks.
Management Type Actively Managed
Restrictions on Transfers Investment funds in the FRS Investment Plan are subject to excessive trading restrictions as detailed in the FRS Investment Plan Summary Plan Description and FRS Excessive Fund Trading Policy.
Fees and Expenses Fees and expenses are only one of several factors that should be considered when making investment decisions. More information on fees and expenses can be found in the FAQs on the MyFRS.com website.
Investment Philosophy The Fund seeks favorable long-term returns by keeping costs low and investing across multiple asset classes to diversify and control risk. The Fund invests in other FRS Investment Plan Funds and is designed to have the same level of risk as a portfolio mid-way between that of a 100% stock portfolio and the FRS Select Moderate Balanced Fund
Portfolio Construction Because the Balanced Funds are designed to keep their overall level of risk steady over time, the proportions and specific funds included in each Balanced fund may change over time. Periodically, Financial Engines will estimate the risk /reward characteristics of all FRS Investment Plan Funds and use their optimization program to create an “efficient frontier” for specific levels of investment risk (i.e., volatility of expected returns.)

An efficient frontier identifies combinations of funds that provide the maximum expected return for specific levels of expected risk.

Financial Engines also applies proprietary methodologies to stabilize fluctuation of funds in and out of the FRS Aggressive Balanced Fund as a result of periodic optimizations.
Rebalancing Upon submission to the FRS by Financial Engines, the optimized (target) fund allocation recommendations are reviewed by the FRS and compared to current asset allocations. If the current allocations are more than +/- 2% different than the target allocations, the FRS will rebalance the assets among all funds in the FRS Select Aggressive Balanced Fund to bring the current allocations back to within +/- 1% of the new target allocation.

If the target allocation changes by more than +/- 5%, or an investment fund is either removed or added to the FRS Select Aggressive Balanced Fund lineup, the entire Balanced Fund portfolio will be rebalanced to the new target weights.